Forces Of Globalization And Its Financial Implications For A Multinational Firm

3892 Words16 Pages
Chapter 1 Forces of Globalization and its financial implications for a multinational firm Chapter Objectives • Understand why international competition has led to multinational corporations • Explore globalization and related advantages and disadvantages • Identify motivations for corporations to expand internationally • Describe differing traits of multinational companies (MNCs) • Consider risk and the financial marketplace from a global perspective THE GLOBAL NATURE OF BUSINESS Businesses today operate an environment that differs greatly from anytime millennia, centuries or even decades ago. The pace of businesses has increased exponentially with the continuous improvement of information technology, telecommunications and geolocation supported by satellites and progressively more efficient modes of transportation and mechanization. The ability to move products globally overnight, increasing levels of automation, and collaboration instantaneously via virtual means has forever changed and reduced traditional barriers businesses face while creating a myriad of new challenges, risks and opportunities. “The ability to move products globally overnight, increasing levels of automation, and collaboration instantaneously via virtual means has forever changed and reduced traditional barriers businesses face while creating a myriad of new challenges, risks and opportunities.” The combination of global markets has focused both companies and consumers on one primary goal, seeking
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